15 July 2009
As per Sec 80DD if an assessee has incurred any expenditure for the medical treatment of a dependant being a person of disability, the assessee will get a deduction of Rs. 50,000/- from hi Gross Total Income. Again, if the same amount has been deposited under a scheme of LIC in this behalf than also he/she will get a deduction of Rs. 50,000/-.
So it is immaterial how much the assessee spends he /she will be getting a deduction of rs. 50,000/- only (read as Rs. 75,000/- if severe disability).
In this case if he/she has spend more or less he will get a deduction of Rs. 50,000/-.
However, if the money has been deposited in LIC and he/she is getting a refund from there than the refunded amount shall be taxable in the hands of the assessee.
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